1996 JTR(SC) 2102
1997 AIR(SC) 2150 ; 1997 AIR(SCW) 2004 ; 1997 91 FJR 73 ; 1997 77 FLR 107 ; 1996 11 JT 582 ; 1997 2 LLJ 1070 ; 1997 2 LLN 1002 ; 1997 1 PLJR(SC) 138 ; 1998 1 RSJ 482 ; 1997 1 Scale 36 ; 1997 1 SCC 754 ; 1997 SCC(L&S) 313 ; 1996 Supp9 SCR 695 ; 1997 2 SLJ 60 ; 1997 1 SLR 743 ; 1997 KHC 682 ; 1997 1 Supreme 522

1997(1) Supreme 522
SUPREME COURT OF INDIA
K. Ramaswamy and G.T. Nanavati, JJ.
Dr. Baljit Singh -Petitioner
versus
State of Haryana -Respondent
Special Leave Petition (C) No. 23322 of 1996
Decided on 9-12-1996
Counsel for the Parties :
For the Petitioner : Jasbir Malik and M.S. Dahiya, Advocates.

IMPORTANT POINT
When serious offences are pending trial, it is open to appropriate Government to decide whether or not the delinquent should be permitted to retire voluntarily or such disciplinary action as is available should be taken under law.

Act Referred :INDIAN PENAL CODE : S.471, S.209, S.406, S.465, S.468
SERVICE LAW : .

(A) The petition arises under the Indian Penal Code sections 465, 468, 471, 209, and 406, read with service law rules, where pending criminal prosecution triggers government discretion over voluntary retirement. The interplay between Rule 5.32(B) of the Punjab Civil Services Rules and the power to decline a tainted employees resignation is examined in light of the accuseds attempt to pre-empt disciplinary outcomes by handing over charge and securing premature retirement. The sections penalize forgery and cheating in court, and their invocation justifies a cautious, case-specific approach to voluntary retirement when public interest and discipline are at stake.

(B) Key principles include: (i) expiry of a three-month notice under voluntary retirement rules does not automatically sever the employeremployee relationship; (ii) government retains discretion to reject voluntary retirement if serious offences are pending trial; (iii) acceptance of resignation is not presumed by mere handing over of charge; and (iv) ratio from prior precedents applies only to its facts and cannot be extended to all disciplinary scenarios.

Facts of the case:

The petitioner, an H.C. M.S.-II, served under Punjab Civil Services. He tendered voluntary retirement under Rule 5.32(B) and gave three months notice, handing over charge on February 11, 1994. The authority declined acceptance on February 25, 1994, citing pending prosecution under Sections 465, 468, 471, 209, and 406 I.P.C. The High Court refused to interfere, and the matter is currently sub judice.

Findings of Court:

The Court held that serious offences pending trial empower the government to deny voluntary retirement; handing over charge without formal acceptance does not terminate employment; and the three-month period alone does not mandate severance of service. The decision to allow or reject voluntary retirement rests with the competent authority until communication of acceptance.

Issues:

Whether an employee under criminal prosecution is automatically entitled to retire after giving three months notice; whether handing over charge operates as acceptance of resignation; and whether the ratio of Union of India v. Sayed Muzaffar Mir extends to cases involving serious offences.

Ratio Decidendi:

When prosecution for grave offences is pending, the government may postpone superannuation and decline voluntary retirement until the disciplinary and legal process concludes; mere notice expiry and handing over of charge do not dissolve the employeremployee relationship, and acceptance by the employer is a necessary precondition.

Result:

The Special Leave Petition is dismissed.

ORDER

This Special Leave Petition arises from the judgment of the Division Bench of the Punjab and Haryana High Court, made in Civil Writ Petition No. 12167/94, on May 8, 1995.

2. The petitioner while working as H.C. M.S.-II had tendered his voluntary retirement expressing his intention that he may be prematurely retired under Rule 5.32.(B) of Punjab Civil Services Rules (for short, the Rules ) under which a government servant is given liberty to tender voluntary retirement by giving notice of not less than three months. Accordingly, on September 20, 1993, he had given the notice. On his own showing, he handed over the charge on February 11, 1994 even without acceptance of voluntary retirement. Thereafter, the authority be proceedings dated February 25, 1994 declined to accept his retirement which he challenged in the High Court. The High Court refused to interfere with the order passed by the Government

2. It is an admitted position that prosecution against the petitioner for offences punishable under Sections 465, 468, 471 209, 406 I.P.C. etc. is pending trial in the Court of the Addl. District Judge, Gurgaon. Under those circumstances, the Government declined to permit the petitioner to retire voluntarily from service. It is contended by Shri Jasbir Malik, learned counsel for the petitioner, that under the aforesaid Rule he is entitled to retire; due to his family circumstances he tendered his resignation; on expiry of three months notice the petitioner is entitled to relinquish his office; the Government has no option but to accept his voluntary retirement. In support thereof, he placed reliance on the judgment of this Court in Union of India v. Sayed Muzaffar Mir1. Therein, while the respondent was under suspension pending enquiry, he tendered his voluntary retirement on July 22, 1985 under Rule 1802(b) of the Indian Railway Establishment Code. The period of three months had expired on October 21, 1985. The order of removal was passed against him on November 4, 1985. Under those circumstances, the Tribunal held that he was entitled to retire from service and the order of removal should, therefore, be treated as non est. In those circumstances, this Court appears to have upheld the contention of the respondent and the view taken by the Tribunal. But in this case it is seen that when serious offences are pending trial, it is open to the appropriate Government to decide whether or not the delinquent should be permitted to retire voluntarily or such disciplinary action as is available should be taken under the law. Therefore, mere expiry of three months period of notice given, does not automatically put an end to jural relationship of employer and employee between Government and the delinquent official. Only on acceptance by the employer of resignation of request for voluntary retirement their jural relationship ceases. It would, therefore, be of necessity that the Government takes appropriate decision whether the delinquent would be permitted to retire voluntarily from service pending the action against him. In this case since serious offences are pending trial against him, the Government have rightly refused to permit him to retire voluntarily from service. The ratio in the above judgment has no application to the fact situation and cannot be applied/extended to all the situations. Each case should be considered in its own backdrop of facts. Until the jural relations of employer and employee comes to a close according to law, the employer always has power to decide and pass appropriate order.

3. It is seen in the service jurisprudence that before an incumbent attains superannuation while an enquiry is contemplated against him, it may be open to the Government to postpone the superannuation for continuance of pending disciplinary proceedings for completing enquiry or to initiate action against a delinquent employee. When such is the situation, it will always be open to the Government to decide whether or not to permit an incumbent to retire from service. It is then contended by the learned counsel that when the petitioner had handed over the charge which was accepted by the officers, there is no scope for the Government to refuse acceptance of the resignation. We find no force in the contention. If the contention is given acceptance, it would lead to deleterious consequences. For instance, if a public servant commits misappropriation of funds of the Government, and after tendering his resignation and handing over the charge walks away with booty. Acceptance of such contention would lead to serious repercussions and consequences flowing therefrom would be disastrous to maintain discipline in service. Under these circumstances, until the acceptance or rejection of request for voluntary retirement is communicated to the petitioner, the petitioner is required to remain in office and his handing over the charge without any order of the competent authority and acceptance of his request for voluntary retirement have no result.

4. The Special Leave Petition is accordingly dismissed.

SLP dismissed.

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